Fuel demand is returning to normal all over the world as lockdown restrictions are being lifted. Considering this, the state-run fuel retailers in the country have increased the price of petrol and diesel for the first time in 80 days by 60 paise each on Sunday.
Petrol and diesel prices were last updated on March 16, since then the fuel rates only increased when the state governments increased the VAT on the sale of fuel. This was done by states to maintain a source of revenue during the coronavirus crisis, which was costing the states crores of rupees every day in the form of taxes which could not be collected due to complete lockdown.
Petrol, diesel prices in top cities today:
- New Delhi: Petrol Rs 71.86. Diesel Rs 69.99
- Mumbai: Petrol Rs 78.91. Diesel Rs 68.79
- Hyderabad: Petrol Rs 74.61. Diesel Rs 68.42
- Bengaluru: Petrol Rs 74.18. Diesel Rs 66.54
- Gurgaon: Petrol Rs 71.68. Diesel Rs 63.65
- Chennai: Petrol Rs 76.07. Diesel Rs 68.74
In May, the Centre increased the excise duty on petrol and diesel by Rs 10 per litre and Rs 13 per litre, respectively. These prices didn't end up reflecting on the retail price as they were adjusted against the sharp drop in crude oil rates during the same time period.
Fuel prices in India are dependent on international crude oil prices as India imports around 80 per cent of its fuel requirements.
Crude oil prices are recovering overseas with the Brent crude oil holding steady at $42 barrel on Friday. Just two months ago in April, the same brent crude oil had dropped to $20 per barrel. Prices are still lower than normal but are recovering.
Fuel demand all over the world dropped by March late to early April as less oil was being consumed because of the coronavirus-induced lockdown in multiple countries.